Pi Pioneers Defend Dual-Value Model as Exchange Price Nosedives 60%

Pi Network (PI) is a unique altcoin because it operates on a dual value system. However, this distinctive feature also sparks debates about its long-term sustainability.

While the altcoin season has yet to arrive and PI’s price on exchanges has dropped significantly, the gap between the two values in the dual system continues to widen. This growing discrepancy raises even more doubts about the model.

What is The Dual Value System of The Pi Network?

The community of holders, known as Pioneers, all recognize that Pi Coin currently has two different price levels.

The first is the internal value within the Pi ecosystem, called the Global Consensus Value (GCV), which is set at around $314,159—symbolically inspired by the mathematical number Pi. The second is the price on exchanges, which, at the time of writing, is around $0.60.

Pi Network’s dual value system is a bold experiment. It offers hope to believers but also comes with serious risks.

According to Mr. Spock, an investor who supports Pi Network, this system is workable and could be part of a deliberate strategy.

“Some potential strengths include:• Merchant trust and consistency in the ecosystem• Stable economic environment for Pi-based apps and platforms• Protection against volatility and market manipulation.” – Mr. Spock explained.

However, he also admits that the system faces risks. The massive price gap could erode trust. Moreover, many may buy Pi at low prices on exchanges and spend it at a much higher GCV rate within the community.

Additionally, he suggested that the Pi Core Team intervene to maintain GCV’s trust, such as limiting ecosystem participation to KYC-verified wallets and using smart contracts (integrating GCV).

Fair Valuation or Delusional Dream?

In reality, Pioneers continue to share arguments in support of GCV. For example, some point out that developers have integrated GCV into the source code of smart contracts and shared them on GitHub. Others highlight communities in Thailand and Vietnam that continue to promote and transact using the GCV rate.

“This movement is real. This mission is alive because of all of us. And this freedom? It’s something worth fighting for, worth every bit of effort and heart we put into it.” – Lumari, a Pioneer, said.

According to data from BeInCrypto, Pi’s price has dropped more than 60% in May following the public appearance of co-founder Nicolas.

With the current exchange price at $0.62, the GCV is over 500,000 times higher than the market value. This vast difference poses a serious challenge to the model’s feasibility.

Overall, the sustainability of this model hinges on maintaining community trust. The internal value model may lose relevance if more users start trading Pi based on the market price rather than GCV.

In addition, Pi’s supply is estimated at 100 billion coins, which means the network’s total valuation under the GCV could reach $31.4 quadrillion. This figure far exceeds the global GDP, which is currently around $100 trillion. Yet, this doesn’t seem to shake the pioneers’ belief.